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A27
business
Thursday, January 29, 2015 www.guardian.co.tt Guardian
SAN FERNANDO CITY CORPORATION
P
START DATE: Monday January 5, 2015
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0129054
SAN FRANCISCO---Apple had
another blowout quarter thanks to
its new plus-sized iPhones, which
helped the company smash sales
records for the holiday season.
Apple said it sold 74.5 million
iPhones during the three months that
ended December 31, beating analysts
expectations for the latest models of
Apple s most popular gadget, intro-
duced in September.
The surge in iPhone sales drove the
company s total revenue to US$74.6
billion, up 30 per cent from a year
earlier. CEO Tim Cook said on a call
with analysts that demand for the
phones was "staggering," and noted
that results would have been even
higher if not for the impact of the
strong dollar on overseas sales. Net
income rose 38 per cent to US$18 bil-
lion, as Apple reported earnings of
US$3.06 a share. Analysts surveyed
by FactSet were expecting earnings
of US$2.60 a share on revenue of
US$67.39 billion.
Apple also forecast revenue for the
current quarter between US$52 billion
and US$55 billion. The midpoint of
that range is just below the average
analyst estimate of US$53.6 billion
for the period ending in March, when
sales typically fall from their holiday
season peak. Apple chief financial
officer Luca Maestri said in an inter-
view that revenue for the current
period would increase between 14
and 20 per cent from a year ago,
despite the strong dollar, which has
forced other companies such as
Microsoft to lower their forecasts.
"We feel very good about the
March quarter," Maestri said, while
calling the December results "pretty
amazing."
Apple has set records with each
new version of its iPhones. By com-
parison, the company sold 51 million
smartphones during the holiday
quarter in 2013, when its iPhone 5s
and 5c models were new on the
scene. Bigger screens are one reason
for the popularity of the iPhone 6
and 6 Plus. Apple had resisted when
other companies such as Samsung
began introducing smartphones with
bigger screens. But its iPhone 6 has
a 4.7-inch screen, measured diago-
nally, while the 6 Plus screen meas-
ures 5.5 inches. That compares to a
four-inch screen on iPhone 5 mod-
els.
"It took Apple a long time to come
to grips with the fact that the market
did want the bigger screen," said
Gartner tech analyst Van Baker. "They
finally closed the gap on a feature
they were missing, which their com-
petition had capitalised on."
The surge in sales of Apple s sig-
nature smartphones helped make up
for an expected decline in sales of
iPad tablets. The company sold 21.4
million iPads, down 22 per cent from
a year earlier. Sales of Mac computers
rose nine per cent, and Apple saw
overall revenue gains in all geographic
regions.
The new models also helped Apple
increase its share of the China market.
Apple doesn t break out iPhone sales
by country, but a report by research
firm Canalys estimates that Apple
sold more smartphones in China dur-
ing the last quarter than any other
maker, including South Korea s Sam-
sung and the Chinese companies
Huawei and Xiaomi. (AP)
Record iPhone
sales drive blowout
quarter for Apple
Specialist Joseph Mastrolia, right, works with traders at his post on the floor of
the New York Stock Exchange yesterday US stocks moved higher in early trading
yesterday after very strong earnings from Apple and Boeing. AP PHOTO
STRONG EARNINGS